Epic Real Estate Investing - How to Raise Private Money without Getting in Trouble - Jillian Sidoti | 864

Episode Date: December 12, 2019

This Thursday, Matt is joined with Jillian Sidoti, an attorney that is one of the country’s leading experts on raising money and an author of the highly rated book The Crowdfunding Myth. In today’s episode, Jillian explains every single nuance on how to raise money without getting in trouble. Therefore, stay tuned and learn how to use other people’s money for your next real estate investment! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.

Here's Matt. All right, got a great show for you today. Our guest is one of the country's leading experts on raising money. She has assisted multiple companies and entrepreneurs realize there are fundraising goals through crowdfunding 506Cs and regulation A's. She also continues to specialize in transactional legal matters such as private placement memorandums, S-1s, and regulation defiling, all of this alphabet soup we're going to get to learn about today. And she also spends her time educating real estate investors on how to legally raise capital for

their real estate investment projects and she is the author of the highly rated book, the crowdfunding myth, which debunks the multiple myths surrounding crowdfunding and teaches the reader how to effectively crowdfund their securities offering. So please help me welcome to the show, Ms. Gillian Siddhury. Jillian, welcome to the Epic Real Estate Investing Show. Thank you so much for having me. I am so excited to be here. Yeah, me too. And we met a while back back in Denver. Yes. And it was a three-day event on just on how to raise money. I didn't know there was that many speakers out there that we could speak from so many different angles on doing this. And it's, it just shows that it's a skill, I guess, that's in demand. And everyone wants to

know how to do it. And they think they need the money first before they can take that first step. And we talk about that here all the time. And yeah. Yeah. And it's, it's not just about the skill, which is super important. But I think you have to marry the skill with the legal aspects of it. You can't have one without the other. Because one without the other, is pointless. Right. So I want to talk about that because people can easily and unknowingly get themselves in trouble. And then there's other things where you can do other things, right? I've built a whole career on it. So I would like to know maybe I've accidentally had some, miss some landmines luckily myself. Anyway, let's give me a little bit of background on yourself. I kind of ran down

the bio there, but you are an attorney and still, is that correct? Yeah, I'm a practicing attorney. This is all we do is really kind of help people figure out how they're going to raise capital for their real estate deals. I mean, our practice isn't limited to real estate, but that's our bread and butter. That's where I started off. Before I was in law, you know, practicing law in this area of law, I was actually a real estate developer myself during the last downturn or before the last downturn. And then before the last downturn, and then before, before the last downturn right before, and then I jump ship and started practicing law. And I still do a fair amount of real estate development here or there, but the practice is thriving.

So I'm a better passive investor than I am an active investor. I just don't have the time to be active. And I really get a lot of joy out of helping people navigate these waters of figuring out how to get capital so they can leverage their real estate businesses. But, you know, I have to tell you, Matt, you made a great point about maybe I avoided some landmines. I did myself. And here I was, you know, studying for the bar exam, you know, about to be a lawyer. And I was out there raising capital illegally. So I've been there, done that.

I know the pains of trying to raise capital and not realizing, oh, wait a minute, there's laws that apply to trying to raise capital. there's actually ways that you should be doing this. So, yeah, and that's when I was doing condo conversions down in San Diego, and I started realizing, oh, my gosh, I'm raising money from investors, and I'm supposed to be giving them paperwork. Right. Yeah. An agreement of some sort. So, you know, when I ask people what they do for living in, people tell me IT.

I'm like, what is IT? And I probably asked that probably a dozen times. no, probably more than that. I get a different answer every time, and I still don't know what IT people do. And I also kind of feel that way about when people say they're in real estate development. It's such a broad general answer. And there's so many different ways you can go down. So explain to me what are some of the things that you developed.

We were very specific in that as well. We did condo conversions. We bought multifamily buildings, brought them down to the studs, re-have the entire building and then what's called mapping, we remapped, sub-divided the building into condominiums. So then we sold each individual unit off as a condominium as opposed to having it rented out as an apartment building. It was very lucrative at the time. I mean, we made a ton of money, but the writing was on the wall. The city of San Diego stopped, you know, really approving condo conversions due to environmental concerns, which is a whole

another show. And also, we saw the economy start dipping. You know, it went from being able to buy a unit for $100,000, rehab it and sell it for $400, to buying a unit for $100,000, having to put at least $150,000 into it because of all the things the city and the county were making you do. And then the economy also starting to crash. So things were staying on the market longer. And we just saw the writing on the wall. So we just stopped doing projects and anything we had, we started just sell, sell, sell. Got it.

And so the logical thing when anyone is going to reinvent themselves, they're going to become an attorney, right? Yeah, well, that's, you know, of course. No, but I, you know, in all fairness, I had already, you know, passed the bar. I just wasn't practicing law. and it was just a natural progression to go from doing that to doing the development to doing the law. I knew I wasn't going to buy any more properties. The company I was working with wasn't going to buy any more properties at that time. It was like the beginning of 2007. So it just didn't make sense. And then starting in about mid-2008 is when I started buying properties

again and started investing again. Got it. So did you choose this type of law just because that's kind of what you were familiar with just prior to doing that? Absolutely. I mean, that's what I was doing. I was doing both getting the private money investors, the equity portion, but then I was also doing the bank.

And what I mean by that is if any of you out there have done a development deal of any kind or not even a development deal, but just a big commercial purchase, you know. that talking to the bank is an eight to ten hour a day job where you have to get the bank every little thing they need and then they want it a different way and they want it this way and they want so that's what I did is I just talked to banks and investors all day long it was all about the money. Got it. Okay. So you go and do this and so who is your your typical client? My typical client is somebody who comes to me and says, you know, I was out there asking my friends and family for money and I realized that maybe I shouldn't be asking my friends and family

for money without providing them with some kind of documentation. And that, again, that transcends real estate. But most of my clients are real estate people or, you know, a big, a huge typical thing for me is the single family guy, right? The single family guy who says, I'm sick of doing onesie-to-sies. I want to move up to commercial property. And I don't know how to do it because I don't have enough of my own money, how do I do that? Got it. Okay, so that's good. That's going to lead into my next question. So when you're using friends and family and Aunt Sally and Uncle Joe's money, at what point when they come in, or what's the way to do that in that type of basis

where you're not violating anything? Well, the best thing to do is to do what I call the 3Ds, disclose details and disclaim. You want to disclose all the material facts so that they're making an informed investment decision. You want to give them all the relevant details and then you want to disclaim any liability. So you're basically telling your investors the sad story of investing. And I know that sounds counterintuitive because you want to convince people to invest. But that's really what your legal obligation is, is to tell them, look, a hurricane could blow through here and wipe out all of our properties and we might not be adequately insured and we can lose time and money.

Right. Okay. So let's say I've got this. a deal under contract and I go to my Aunt Mary. I say, Aunt Mary, I need some money for this deal. What is the way to structure that deal so you are within the legal parameters? I just want to say, doesn't everybody have an Aunt Mary? We do. I think every person on Earth has an Aunt Mary. Totally. Mine was Aunt Carolyn. Aunt Carolyn got me started.

So, you know, really, what you want to do is first understand, and if we're taking this right down to basics, you want to understand, yeah, that people are not, should not rather be investing in you. And that's for two reasons. One, that's not something to invest in. The department of you is not something to invest in. And the second reason is for personal liability protection for yourself. So we want to create, and what I recommend to most real estate entrepreneurs, what you want to create is a limited liability company. And what you're basically going to be doing is providing interests in that limited liability company to your investors.

You can structure those interests in a variety of ways. You can say to your investors, I'm going to give you what's called a preferred return, where it's a stated return that the investors get paid first on their money, a certain stated return. You could do just an equity split where it's, you know, I'm going to take 50% and my investors are going to take 50% or you can do a hybrid of the two where you say, investor, you're going to get preferred return. And then after that, we're going to split anything remaining, you know, 50, 50, 75, 25, you just got to work the numbers and see how it all fleshes out for both you and the investors.

So you both, you know, are walking away from the deal happy. Right. But it's a limited liability company. that limited liability company is ruled by a document called the operating agreement. The operating agreement tells you and the investor what their expectations can be, how the company is going to run, what the voting rights are. It's just going to lay that all out for everybody, so everybody's informed. So how many people can be involved in that LLC in the operating agreement without having to go get some sort of formal filing? Well, it's not really about the form.

formal filing, right? So what's the law say? The law says that anytime there's an investment of money, there's more than one investor, the investors are expecting a return on investment, and there's somebody who's doing all the work. And obviously, that's not how it's written in the law, but we're getting to the brass tax of it. That is a security, and you have these obligations of making adequate disclosures to them. So the answer, the legal answer, is two. The most reasonable answer that, you know, we kind of go by is like, look, if you're going to have more than five investors, you really got to start looking at putting this together in a very formal way. Okay. I don't know if this matters, but now that's top of mind, I'll just ask

anyway. I'll take advantage of this legal advice. And it's not even relevant to me anymore. But when I did my very first deal with private money, we raised over a million bucks. And the parameters were with the consulting that we got was, and it was buying a real attorney, and said if you could have up to 10, but they had to maintain an active status in the operating agreement. Does that sound right? Yes. And that's that fourth part of that test I was talking about. You have to have if there's somebody in charge.

And you can't be superficial about that active status. You're not the first person to try that, right, to try to circumvent the rules. But, yeah, I mean, if you have all the members of the LLC are actively involved in the day-to-day operations, or maybe not even the day-to-day operations, but have some kind of responsibility that transcends passivity, then, yeah, you can probably get away with just having an operating agreement between all of you without you having some kind of legal obligation to them. But do you know that you're creating a, you know, a tax issue for your investors if they become an active investor?

Not necessarily a bad thing, just something to be aware of. Got it. Okay. Yeah, we did all that. And we had like these quarterly meetings. So I made sure everyone had active status and voting rights and all this kind of stuff. Well, look, here's a thing. Like, I'm an attorney and it behooves me to tell.

you to come in here and make have me write you all these documents to go out and raise capital but I'm also a realist and you don't want to have to go to the emergency room because you got a scratch on your face right and I get it you don't want to come to uh an attorney to do all this legal work for you if it's just you know among friends you all trust each other and you're not going to, you know, do any, you know, anything weird. But, uh, you, the minute you start moving outside of those circles is really where you want to start being careful. Uh, and the other thing I would say is, even if you could read online on how to do your own appendectomy, it doesn't mean it's a good idea. Yes. No, that, uh, that wouldn't be a good idea at all. Web MD, right?

Exactly right. I'm sure doctors just love that website, but all their patients are now sort of So then the next structure that I've done in the past several times, and this is what actually caused me to go and start my fund, was I would, I'd have a private lender come in. I'd be the owner of the property and they were essentially the bank. So they were on the note on the property. Yes. Is that on the up and up doing it that way? It is.

So long as that note is secured by a deed of trust or mortgage and is not fractionalized and you didn't advertise to get that investor through the door. Perfect. All right. Yeah. Fox? We're good to go. All right. Look at that. You're winning today. Totally. It's so funny because when we have people on the show and I've said this many times before, now I'm not an attorney, but you can actually say I am an attorney and this is what you do.

So that's good. So the reason I got my fund and I think this is a good and you kind of led onto this is where your ideal client comes from is that it got very successful and I had a bunch of properties with a bunch of different people with a bunch of different arrangements and I started to lose track of who was who and when I owed who and everything. And just became a real bookkeeping nightmare. Oh, sure. Yeah, it was crazy. So I went ahead and just kind of washed all that out and transferred everybody that wanted to come with me into the fund. And now everybody's purchasing. Right. Right. So what's the ideal time? I think I waited too long. What would you say is the ideal time to make that transition and start, you know, put your... I think when you start feeling that,

that pain of I'm not getting anywhere. I'm running in a hamster wheel. It's so funny because I don't even enjoy watching my investors even start out that way. I think it's, I know it's a popular way to start out is to get one investor per deal and try it out and see how it goes. But then you kind of get stuck in this rut. And there's two reasons why you get stuck in this rest. You get used to doing it that way, right? Like, I'm going to go out by a property and then I'm going to find an investor, then I'm going to give them the money back, et cetera, et cetera. But there's another party involved who also gets used to that, and that's the investor. And the minute you, and I don't know about you, Matt, if you had this issue, but once you start changing things on the investor

after it's been going so well for them for a while, they kind of resist that change. So to me, it's like I would prefer to see you not start off like that at all, especially if you're doing single family flips, you know you're going to do a lot of them. Even if you start off with a small fund, do that instead of doing these onesie-to-sies, I'm going to secure it with the deed of trust or mortgage. Because in the other issue you come in with is that you have a deal, you want to take the deal down. Your investor says, I'm so into taking this deal down with you, but I'm $25,000 short. Well, you've just ruined the exemption by bringing in a second party. Or you have to put one of those investors behind the other investor, which nobody wants to be in second or third position or fourth position if you have a bank involved.

So to me, it's like, look, the minute you start feeling those pains, the minute that you get that kind of answer or you're reaching a critical mass or you find that you're sending out checks at all different times of the month, it's time. to move to a fun structure, get everyone on the same page, recycle everyone's money, stop selling deals, and start selling dreams. Ooh, I'm going to put that. That might be the name of the episode. That was a stop selling what? Deals. Start selling dreams.

Start selling dreams. I don't know if that'll be compelling enough without any context, but I like it. How would you like to be a real estate investor without actually doing any work. That is a really, really long title. No, I'm just saying that's the point. Oh, got, I got, got, I got. I thought you were giving me another alternative title. No, no, no. There's only this much on the phone that they can see, so we got to get the big, juicy words in the first three. All right. So you're so right with investors once you're working with them and you start changing things because our initial fund was, gosh, and correct me if I'm wrong,

and I know you well, because I can't keep the letters straight. 5.06. B.0.5.B. which allowed us a certain number of unaccredited investors. You're right. Yeah, you got it. All right. So it allowed me 30, right? And I was like, oh, I know 30 people with 50 grand right away. That'll be easy because I was already working with them all.

Yeah. So we went over to the fund and they all said, oh, no, well, why don't you go to that? We'll wait and see how that goes, right? And so then I was left with that, but that 506B, it prevents you or prohibits you from actually advertising your fund now. Right. Right. So now it stuck. So my inner circle was wanted to say, wanted to wait to see how it went before they got involved. But then I couldn't advertise it to anybody. And so we made this shift to the 506C. Oh, and so how's that going? Are you out there? Because now I can talk about it here on the podcast, right? But before I was tightly lipped or sealed lip, wasn't allowed to say anything or I had to be very creative and how I did it. But anyway, that didn't last, that little transition didn't last very long. So if you want to go check out,

I can go to Epic Wealthfund.com, by the way. I'm going to go check it out. I'm going to see this as soon as we're done here. I haven't mentioned that in a really, really long time. Oh, no kidding. Yeah, yeah, no. So Regulation A, that's the crowdfunding aspect of it, right? Yeah, it's one of them.

So the way I look at it is, and the eyes of the law, there's one way to crowd fund. And the way to crowd fund in the eyes of the law is under Regulation CF, which is not appropriate for most real estate entrepreneurs, so I don't even want to go there. You can't raise enough money. Your average investor invests too little. You have to find a particular portal to put it on. But in the eyes of like how do we crowd fund, there's three separate laws that you can crowd fund under. That regulation CF I was talking about, Rule 506C, which you're doing, Matt, where you go out, you get accredited investors only and you can advertise for those investors. You can go to the crowd and say who wants to invest.

But the highest invest use of crowdfunding or the crowdfunding laws is Regulation A, which allows you to go out and say to every investor, who wants to invest, you can invest with me here and you can take money from anybody. Right. Okay. So I can do that now? No. You got to get a. approved by the SEC. So can you start the process now? Sure. But I tell everybody you want to plan four to six months to get through the SEC, not only to get your documents done, but to get through the process with the S. Well, I have my 506C. So I have to go through another process to get the

regulation A added to it or something. Yeah. So you would have to basically convert that into a Regulation A, or in your case, what I would probably do is just start a new LLC, start a new fund where it's a regulation A, we get an audit done on your books and records, and the next question is, well, what are they auditing? The answer is nothing. Still have to do it. So you get an audit done, and then you send it off to the Securities Exchange Commission where they, what they do is called qualify it. But before they'll qualify it, they usually have questions or comments, and you have to go through a couple of revisions before you get that qualification. Got it.

There's a very big social media presence out there that does a lot of talking about raising money. I know you know who he is, but is that how he does it with that? Yes. Okay, that's how he does. All right. Yes. I didn't know if you wanted me to mention it. So, quite.

All right. Okay, good. So let's see, 506. What else do we need to? Okay. So let's do this. The crowdfunding myth. So what are debunks multiple myths? Give me three myths. Well, you know, when I wrote that book back in I think 2015 or 16, I can't quite remember. But it was before all the rules were rolled out. But before that, a lot of people were, you know, trying crowdfunding here.

And the myths are still true. Even the book itself is a little ahead of the law. the myths are still true. And one of the myths is the one that drives me, the craziest, is that people think they can get listed on a crowdfunding platform or portal, and it's magical. Like, they're going to raise all this money and everything's going to work. And that if they just tell people they're going to make 50% return on investment, the money will come in.

And it does not work that way. And I see the evidence of that still to this day where people believe that if they just go out and shout from the rooftops, how much money you can make on their deal that people are going to just start rolling in. Or if they align themselves with a crowdfunding platform, that the crowdfunding platform is magically going to bring investors through the door. And it's just simply not true. You've got to have people who like, know, and trust you and believe in whatever it is that you're doing. And you have to believe in what you're doing. If you don't believe in what you're doing, there's no way you're going to be able to sell that to

investors. Right. Very good. So selling, selling the dream. Let's get on to selling the dream. Yeah, everybody wants to know what the story is. No one cares about the investors. Well, to say no one cares about the investors is a little tough to swallow because that's not necessarily true, but it's a far second to the story. Okay, so let's go there. What's most important element in actually raising the money? Because that's what I want, that's the big mystery for people. Like, how do you go out and find the money and how do you raise the money?

You got to develop the story first. What is your story? Like, so for example, and we'll just, I'll take my own situation with condo conversions. There was a lack of housing for purchase in the San Diego market. And it's impossible to do ground up construction in San Diego, just the rules and regulations and the permitting just made it so difficult. So the natural, you know, progression there is to, okay, we have this. need. There is this demand for housing. There's all these jobs that are here in San Diego. There's

the military here in San Diego. People don't want to live on base. We have to provide them with some kind of housing. But ground up construction is too costly. There's not enough land. There's not enough this. What can we do? We're going to repurpose existing buildings into housing. And not only that, we're going to change the face of the neighborhood because we're going to take a building from the 1950s and totally reform it to today's standards, which is great for everybody. You can do the math from that story right there. And that's what we want people doing. We want them doing mental math without saying one single number. You might use statistics, but you're not using dollars and cents. You're using like, you know, the city is increased in population by 10% in the last five years.

That's really, you can do the math. People need to live somewhere. So those are the stories you kind of want to sell. There's a reason why you're investing. Tell us that story and the investors will come. They'll start drawing those natural conclusions. Right. Okay. So that's good.

In this sense, when you're raising a lot of money, right, and from multiple people, you're going to need some credibility for yourself and you're going to need a good story as to what you're doing next, right? And why? Right. Right. And the thing is, I'll tell you this. I had a guy once, I had a guy.

I know a guy. I had a client several years ago who was a new multifamily investor. He started buying multifamily buildings. And he really didn't have a ton of experience buying multifamily buildings, but he had some experience. And he was concerned like, okay, I have some experience and buying multifamily buildings, but I don't have a lot of experience in multifamily buildings. And I said, well, what else do you do? And he goes, well, my day job is a rocket scientist. And I thought, okay, you need to talk about that. Because I think that goes to like how smart you are, is that the fact that you're this rocket

scientist. So you've got to just figure out, again, you're why and your who. And it might not be that you have the most experience, but you care the most. I'll tell you right now, one of the other attorneys in my office, I was talking to her about a particular client. We had an investor. The investor said, hey, I'm looking for a deal. Do you have a deal like this that I can invest in? And the other attorney in my office said, I would suggest these three deals. And I said, well, out of those three deals, which one do you recommend the most? And she said, I recommend this one. And I said, okay, that's interesting you say that because that guy's 28 years old. And she said to me, I had no idea. I said, yeah, he's 28 years old. He probably has the least amount of experience out of the three people you

just talked about. And she said, he's the most thorough. He reads all of his documents. He has every detail down. And I think like you can build up that credibility by just being the best that you can be and showing people that you really know how to analyze a deal without ever having done a deal. Right. Got it. Super. So you've got a story and you've got some credibility, whether it's a track record or you just know your stuff and what's going on.

You've got your act together right now. Exactly. So now it's time to go out and promote. Right. Let's just assume we're talking 506C. That's probably the most common, isn't it right? 5.06. No, actually, believe it or not, this is such an amazing statistic.

and I'm going to pull it again for current statistics, but last year, I pulled all the reg Ds and analyze them. Of all the regulation Ds that are filed, which are what 506B and 506C are under, 93% of them were under 506B. That's almost all of them. Almost all of them. Okay. Well, then let's talk about that then instead. So how does that person go out and promote and share their story?

Tell your story. We're not talking about asking people to invest. We're talking about telling your story. I gave you the why of why we did condo conversions in San Diego and not once did I have a call to action on how to invest, what to invest in or what my possible returns would be. I just told you the story and you did the mental math. And what you're going to end up doing is pushing people, actually not pushing people, you're going to be pulling people in to ask you. you, how can I get into this? What do I need to do to get into this?

And the minute they ask that magic question is when you're going to be able to pull them in to investing in the deal. So you're planting the seeds. You're planting the seeds. You let them harvest, I guess. Absolutely. And that's the best type of investor to come in, too, because they know they want it more than you pushing them into getting into it. That's technically no different than how I do the 506C. Probably not because it's.

the most effective way and it's the best type of investors to get through your door. Okay. But if you, I mean, if you look at that guy who does all that social media stuff, right? Mm-hmm. And you look at his early days of doing this. He never came out and said, guys, earn, you know, a bazillion dollars on this transaction. He started off very methodically, why real estate, why real estate, why class A multifamily buildings, why the Southeast market, why did I move out of California?

He gave you all the whys without ever mentioning returns or even having a call to action to invest. Right. I like it. Okay. I knew all that. I just needed to hear it. Smarter than me. Clarity and confirmation cannot be underestimated.

All right. So here's the next thing. And this is maybe a little bit of self-serving. The PPM. Your show. Why can't you be self-serving? It's your show. Do what you want.

The PPM. And this is something I noticed when I jumped over into this. of raising money. Yeah. It's really thick. There's a lot of stuff in there. Right. And you had to disclose the details and the disclaim.

That's filled with that stuff. Right. I mean, it literally says in my PPM that I'm an idiot. I don't know what I'm doing. You're probably going to lose all of your money. I'm going to, there's going to be some conflicts of interest and you probably shouldn't do this.

That's like, I don't know, 50 pages that says that. Yes. I'm just like, who in the right mind would ever sign something? like this. I was like telling the attorney, can we soften that up a little bit? And they probably said now. Yeah, he said no. He said, you got to do it. I said, well, I'm not going to do any of that. He says, it doesn't matter. Yeah. Yeah. And the thing is, the thing is about doing a PPM. And I will tell you guys, you will raise more money with all of those terrible disclosures than not having all those terrible disclosures. Because it looks like to the

investor, you took the time and care and thought of every bad thing that could happen to their money. You will raise more money telling them all those terrible things than you won't. And if you don't mind to indulge me, I'll tell you a little story about where this actually happened where I had a client. I had a guy, another guy. Two guys. I know, I got a lot of guys. I had a guy who was, you know, had a state securities office call him or subpoena him actually and say look we think you're raising you know money illegally and we want all your books and records and we want to know what's going on over there and so this person called me and said you know he was panicking he didn't know what to do and I said

well what have your investors sign and he had them signing like these tiny little notes I don't even think they were secured by a deed of trust and mortgage so it was just not a lot of disclosure at all actually pretty much none. And I said to him, I said, look, we can't recreate, you know, we can't undo what's already been done. But what we can do is move forward. So I said, here's what we're going to do. We're going to write up a document, a disclosure document, telling your investor all of the bad things that could happen and just basically giving them those three Ds. And I want you to call them in to your office and have them sign this document.

If they don't want to sign the document, give them their money back. So he had them all come in. He told them, look, I feel like I need to tie up some loose ends. And the best way to do this is by giving you this disclosure. Please read it. And if you agree to it and you're okay with it, please sign it. Not only did every single investor sign that document, one left his office and called him on the road after leaving and said, I was so impressed that you took the time to do

that that I'd like to put in another $50,000. So, you know, here's a guy who's super stressed out, didn't want to do this, didn't want to make these disclosures to his investors, and it actually worked in his favor, you know, by a whole lot. Yep, you know, in hindsight, I've had almost zero resistance. Yeah. When you read through it, it's like, oh, it's very scary. Oh, sure.

But remember, it's not a marketing piece. It's a legal document. Right, right, right. But it is the final step. You know what I mean? It's like everything's yes and everything's looking great. Now I've got to share the bad news with them. You know what I mean?

It's what it feels like. I was wondering, is there, and someone asked me this, one of my investors, and I thought it was a great idea. Can I take that PPM, go over to Fiverr, hire a voice guy, and have them create an audio book out of it and distribute it that way? Because my guy just didn't want to read it. That is a very interesting thing. I don't see why not.

I've never known anybody to do that. but I guess you would have to have them, you'd have to change your subscription agreement to say that I either read or heard. I don't know why not. I mean, I thought that was a great idea because it is. Yeah, I do too.

I mean, then they would have to sign, they'd have to physically sign the subscription agreement, but the PPM, why not? Right. Totally. Sweet. Well, Jillian, this has been a pleasure. I really want to do this again.

And if someone wanted to get in touch with you, what is the best way for them to do that? Oh, you guys should all go to my website. website crowdfunding lawyers.net. Because on there we have a ton of free stuff information. You don't even have to talk to me. Get whatever you want right there. And then also if you're looking for a quick fix

or you feel like you're just starting off on this, check out our Facebook page. We have two Facebook pages, Private Money Rockstar, which will help you not just with the legal part, but the marketing part. And then also crowdfunding lawyers on Facebook. Okay, so we got crowdfunding lawyers.net. Mm-hmm.

I have the dot com too, but for some reason we start off with the dot net and I've never gotten it out of my vernacular. Oh. You know what's actually good about that is people say, oh, they got the dot net. They didn't get the dot com. I'm going to go see who got the dot com. And then it comes to you anyway. That would be great.

That's just, I have a bunch of domain names, so I'm always thinking that way. And we got private money rock stars on Facebook. Yep. All right? And then we also got crowdfunding lawyers on Facebook as well. Yeah. Perfect. You'll be so sick of me after you go to the site.

So you'll never want. I don't think that's possible. But then if you really want to talk to me, right on our web page, you can make an appointment with me. And I'll be happy to talk to any of you. Okay, perfect. So real quickly, I got like two minutes before I got to go, who is the person that should reach out to you?

Like, what situation are they in right now? And it's important that they reach out to you. If you are looking at that commercial property or you're thinking about starting that single family fund or you just want to figure out, how can I get investors into my business? call me. It doesn't hurt to call me and I'll talk to you for free and we'll figure it out for you and then from there you can decide what you want to do. All right. Is that invitation extend to me as well? It extends to everybody. Of course it extends to you. It exists to you doubly. You just spark something in my head. It's like, okay, I'm going to call you. Awesome.

Julian. Thank you very much and I'll see you again soon. Sure. Awesome. Thank you, Matt. Have a good one. All right. So God bless to your success. I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know, home, boy, we got the cash flow. This podcast is a part of the C-suite Radio Network.

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